Guinness has announced its exit from the Nigerian market and the sale of its controlling shares to the Singaporean conglomerate Tolaram Group, effective Tuesday, June 11.
This decision follows a trend of multinational companies, including GlaxoSmithKline and Microsoft, leaving Nigeria due to the challenging economic environment.
The brewery company, which has been in business in Nigeria for 75 years, reported a substantial N61.9 billion loss after tax between July 2023 and March 2024, shortly after President Tinubu’s policy to float the naira in an effort to unify the currency’s value on the official and parallel foreign exchange markets.
Guinness Nigeria’s N61.7 billion loss after tax in Q3 marked a dramatic 1,000 percent decline from the N5.9 billion profit recorded in the same period the previous year.
This financial setback led Diageo, Guinness’ parent company, to sell its 58.02 percent majority stake to the Tolaram Group.
“Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria, along with royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands,” the company said in a statement.
“The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” stated Abidemi Ademola, Guinness’s legal director.
Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.
